Kenmare Resources ‘in good position’

Kenmare Resources is confident that once global demand for titanium recovers they are well positioned to be a major beneficiary.

The Irish and London-listed company owns the Moma mine in Mozambique which is capable of producing 8% of the world’s titanium consumption.

The company reported a loss before tax of $42.09m (€30m) for 2013, down from a profit of $52.79m the previous year.

The company reported that declined to $137.4m while earnings before interest, taxation, depreciation and amortisation for the year to December were $29m with an operating profit of $4.7m.

Managing director of Kenmare Resources Michael Carvill said he is confident the company has completed its investment in the Moma titanium mine.

“With the expansion complete and commissioned, and with the capital cost behind us, the Moma mine will reap the benefits of this investment not only in 2014 but for years to come. We are continuing to improve the efficiency of our business and drive down our cost per tonne, while tackling the challenges of maintaining consistent power to our operations,” he said.

Connacord Genuity analyst Peter Mallin-Jones said that the fact that shipping had become regular was a good indicator that operations at the mine had stabilised.

“Management has also made some mildly encouraging comments over the market.

“So far in 2014, shipment schedules to core customers have become more regular, a sign of more normal inventories at pigment producers.

“If inventories have stabilised then improvements in pigment demand may lead to a small amount of restocking through 2014 and with that some potential for price rises towards the end of the year,” he said.